Farmers in the Mekong Delta have begun to harvest their winter-spring rice crop, even as rice prices are showing a slight fall along with a slowdown in consumption.
|Slight fall in rice prices in the Mekong Delta (Photo: SGGP)|
The IR 50404 rice variety has dropped by VND200 a kilogram to sell for around VND5,500-5,700 in Ca Mau, Soc Trang and Bac Lieu Provinces.
A kilogram of long grain rice is fetching VND5,500-5,700, the lowest since early 2012.
Nguyen Thanh Bien, deputy Minister of Industry and Trade said that after the long Tet holiday season, most of the businesses are concentrating to meeting earlier orders instead of purchasing, which has caused a slowdown in consumption.
The condition may improve in February and March when businesses resume signing of new export contracts. The Ministry of Industry and Trade and other relevant ministries are trying to keep rice prices at profitable margins for farmers.
The Vietnam Food Association has planned to buy rice for stockpiling in case consumption slows, so as to ensure that rice prices do not slide below VND5,000 per kilogram.
According to the association, rice exports of over 279,000 tonnes in January this year reached US$154 billion, accounting to 50 per cent as during the same period last year.